In general, when manufacturing something, the larger your production volume, the greater your efficiency and the lower your costs per unit. There’s a few reasons for this. Large production volumes let you spread your fixed costs (equipment, administration, etc.) over a larger number of units. They can justify higher capital expenditures, such as more expensive but more efficient machinery. They allow for greater specialization (Adam Smith’s
Nice article. Ocean shipping has the lowest cost per lb or ft3. Following your theory, construction module producers and consumers are better located in port cities. Are there attempts to have a gigafactory of building modules in a port city to supply building modules to port cities all over the world?
Great piece Brian, I'm a fan of this series
Nice article. Ocean shipping has the lowest cost per lb or ft3. Following your theory, construction module producers and consumers are better located in port cities. Are there attempts to have a gigafactory of building modules in a port city to supply building modules to port cities all over the world?